Celebrate, but Worry

Wall Street expects big things from the economy and stock market in the new year. But risks abound, and it pays to beware. The case for staples.

The good times rolled on Wall Street and elsewhere in 2013, and many expect the fun to continue right through 2014. After all, the U.S. economy finally started showing signs of life, up an annualized 4.1% in the third quarter. Europe's prolonged recession looks to be coming to an end. Japan attacked persistent deflation and appears to be winning, and China proposed reforms that could lead to an economic transformation without a steep drop in growth.